In this interview, Professor Wumi Iledare, a Professor of Energy Studies at Louisiana State University, offers insights into the ongoing ₦210 trillion audit controversy involving the Nigerian National Petroleum Company Limited (NNPCL), currently under investigation by the National Assembly. He also weighs in on the operations and future of NNPCL-owned refineries, urging a shift away from overbearing political interference toward institutional reform.
Enjoy the excerpts…
Were you scandalised in any way by the ₦210 trillion audit controversy involving the NNPCL?
The National Assembly should do its duty, and it has the right to demand transparency, which it has done. I think we have to understand the issue at stake. It’s an audit report that identifies liabilities and assets.
So, you’re wondering how the amount came to ₦210 trillion?
The only way you can come about 210 is 103 plus 107. You can ask NNPC Limited to break down the liabilities. It is accounts receivable and accounts payable.
Then, are there legacy debts that the Government of Nigeria owes NNPC? Going back to the subsidies that the Federal Government never reimbursed. Are there some inter-agency issues that need to be broken down? I mean, those are legitimate questions.
Why would you think that Mr Bayo Ojulari, who has just been recently appointed, wouldn’t even want to make initial clarifications?
Well, I wouldn’t, I’m not a Bayo Ojulari defender, by the way. Even though he is my friend and I’m not here to defend NNPC, neither am I here to crucify the National Assembly. They are doing their job. But if you are working in the public space and you are dealing with Nigerian politicians, you have to be careful of what you say.
I expect the National Assembly to understand the implications of sensationalism when you have a new company that is just becoming a public enterprise, a company moving from being publicly-owned to being privately-owned. We have to be careful when looking at what was done when this NNPCL was the old NNPC, which is from 2017 to 2023. So, we must not lump apples and oranges together.
I’m not being defensive of NNPC Limited. No, I’m defending the oil and gas industry in Nigeria. And this sensational approach to bringing a very respectable sector of the Nigerian economy into the dustbin, I can’t stand it. But I’m not saying NNPC should not be interviewed but you can’t lump 2017 to 2013, you need to break it down. What happened since the company became a limited liability company is different from what happened when the company was a public agency.
What are your thoughts on calls for more transparency in NNPCL books?
The NNPC cannot translate from being an agency of the Federal Government or a cash cow of the Federal Government since 1977 to 2021, and all of a sudden, in four years, you want to become like Shell. It is a process.
I’m not saying that the National Assembly should not do its job, but it needs to get technical experts to advise it even with the type of questions to ask. The government must also let the board of directors of NNPCL function in an apolitical way.
The public must not allow politicians to sensationalise things. Where does that number come from? It is likely due to adding liability to assets, and it is likely because they lump every liability from 2017. That’s my opinion. Let’s separate financial literacy from political narratives. And let NNPC Limited begin to move to become a liability company, but it must remain apolitical.
We were told that the Port Harcourt Refinery has come on stream, but it’s unclear what the current state of the refinery is. As a matter of fact, for Warri Refinery, I think the management was recently fired. Let the board of directors look at the assets concerning NNPC refineries and decide what they want to do with them.
What’s your last word?
The oil and gas sector can have a multiplier effect, more so, now that we are paying attention to the midstream and downstream. Honestly, I want to believe that if NNPCL leadership remains apolitical, then successes would be recorded. You cannot say because a politician appointed you, you have to bend to his will. If NNPCL leadership thinks the refineries are not good, they should dispose of them.
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